AM Best has revised the outlook of Solen Versicherungen (SVAG) and Noble Assurance Company to negative from stable but affirmed their financial strength rating of A+ (Superior).
AM Best said the revision of the rating outlook to negative reflects the potential for a weakening in the credit profile of Royal Dutch Shell (RDS), the ultimate parent company of single parent captives SVAG and Noble. This is particularly due to the low oil price environment, said AM Best.
The rating of SVAG reflects its affiliation with RDS to which it remains important as a risk management tool. A deterioration in RDS’ credit profile will therefore lead to downward pressure on the ratings of SVAG. In addition, the rating of SVAG reflects its excellent earnings track-record and strong risk-adjusted capitalisation.
The rating of Noble reflect the strong reinsurance support received from SVAG, said AM Best. Noble is the US-based captive of RDS and cedes 100 percent of its risks to SVAG through a quota share agreement.
AM Best, SVAG, Noble Assurance Company, Royal Dutch Shell, Ratings, Europe, North America